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SEGMENT INFORMATION
 6 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
SEGMENT INFORMATION

(M) SEGMENT INFORMATION

Operating segments are defined as components of an enterprise that engage in business activities that earn revenues, incur expenses and prepare separate financial information that is evaluated regularly by our chief operating decision maker in order to allocate resources and assess performance.

We operate in five business segments: Cement, Gypsum Wallboard, Recycled Paperboard, Oil and Gas Proppants and Concrete and Aggregates. These operations are conducted in the U.S. and include the mining of limestone and the manufacture, production, distribution and sale of Portland cement and slag (basic construction materials which are the essential binding ingredient in concrete), the grinding the mining of gypsum and the manufacture and sale of gypsum wallboard, the manufacture and sale of recycled paperboard to the gypsum wallboard industry and other paperboard converters, the sale of readymix concrete and the mining and sale of aggregates (crushed stone, sand and gravel) and sand used in hydraulic fracturing (“frac sand”). The products that we manufacture, distribute and sell are basic materials used with broad application as construction products, building materials, and basic materials used for oil and natural gas extraction.  Our construction products are used in residential, industrial, commercial and infrastructure construction and include cement, slag, concrete and aggregates.  Our building materials are sold into similar markets and include gypsum wallboard.  Our basic materials used for oil and natural gas extraction include frac sand and oil well cement.

We operate six cement plants, one slag grinding facility, sixteen cement distribution terminals, five gypsum wallboard plants, including the plant idled in Bernalillo, N.M., a gypsum wallboard distribution center, a recycled paperboard mill, seventeen readymix concrete batch plant locations, four aggregates processing plant locations,  two frac sand processing facilities, including the mine idled in Utica, Illinois, three frac sand drying facilities, including the facility idled in Corpus Christi, Texas, and six frac sand trans-load locations. The principal markets for our cement products are Texas, northern Illinois (including Chicago), the central plains, the Rocky Mountains, northern Nevada, and northern California. Gypsum wallboard and recycled paperboard are distributed throughout the continental U.S, with the exception of the northeast. Concrete and aggregates are sold to local readymix producers and paving contractors in the Austin, Texas area, north of Sacramento, California and the greater Kansas City, Missouri area, while frac sand is currently sold into shale deposit zones across the United States.

We conduct one of our six cement plant operations, Texas Lehigh Cement Company LP in Buda, Texas, through a Joint Venture. For segment reporting purposes only, we proportionately consolidate our 50% share of the Joint Venture’s revenues and operating earnings, which is consistent with the way management reports the segments within the Company for making operating decisions and assessing performance.

We account for intersegment sales at market prices. The following table sets forth certain financial information relating to our operations by segment:

 

 

 

For the Three Months

 

 

For the Six Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

166,811

 

 

$

164,790

 

 

$

311,603

 

 

$

292,966

 

Gypsum Wallboard

 

 

122,923

 

 

 

119,701

 

 

 

236,185

 

 

 

234,753

 

Paperboard

 

 

44,459

 

 

 

39,145

 

 

 

87,274

 

 

 

74,463

 

Oil and Gas Proppants

 

 

6,631

 

 

 

18,307

 

 

 

11,727

 

 

 

41,132

 

Concrete and Aggregates

 

 

39,140

 

 

 

36,671

 

 

 

73,891

 

 

 

65,203

 

Sub-total

 

 

379,964

 

 

 

378,614

 

 

 

720,680

 

 

 

708,517

 

Less: Intersegment Revenues

 

 

(20,331

)

 

 

(20,090

)

 

 

(38,655

)

 

 

(38,019

)

Net Revenues, including Joint Venture

 

 

359,633

 

 

 

358,524

 

 

 

682,025

 

 

 

670,498

 

Less: Joint Venture

 

 

(26,975

)

 

 

(29,536

)

 

 

(51,863

)

 

 

(56,547

)

Net Revenues

 

$

332,658

 

 

$

328,988

 

 

$

630,162

 

 

$

613,951

 

 

 

 

For the Three Months

 

 

For the Six Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Intersegment Revenues -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

4,536

 

 

$

4,232

 

 

$

8,071

 

 

$

7,358

 

Paperboard

 

 

15,452

 

 

 

15,596

 

 

 

29,958

 

 

 

30,147

 

Concrete and Aggregates

 

 

343

 

 

 

262

 

 

 

626

 

 

 

514

 

 

 

$

20,331

 

 

$

20,090

 

 

$

38,655

 

 

$

38,019

 

Cement Sales Volume (in thousands of tons) -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly –owned Operations

 

 

1,200

 

 

 

1,248

 

 

 

2,233

 

 

 

2,239

 

Joint Venture

 

 

242

 

 

 

236

 

 

 

460

 

 

 

448

 

 

 

 

1,442

 

 

 

1,484

 

 

 

2,693

 

 

 

2,687

 


 

 

 

For the Three Months

 

 

For the Six Months

 

 

 

Ended September 30,

 

 

Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Operating Earnings -

 

 

 

 

 

 

 

 

Cement

 

$

50,716

 

 

$

48,577

 

 

$

82,316

 

 

$

74,290

 

Gypsum Wallboard

 

 

41,698

 

 

 

40,002

 

 

 

81,034

 

 

 

80,896

 

Paperboard

 

 

10,220

 

 

 

8,138

 

 

 

21,447

 

 

 

14,168

 

Oil and Gas Proppants

 

 

(4,090

)

 

 

(44,600

)

 

 

(10,002

)

 

 

(50,236

)

Concrete and Aggregates

 

 

4,813

 

 

 

3,857

 

 

 

8,497

 

 

 

5,783

 

Other, net

 

 

504

 

 

 

572

 

 

 

1,579

 

 

 

1,007

 

Sub-total

 

 

103,861

 

 

 

56,546

 

 

 

184,871

 

 

 

125,908

 

Corporate General and Administrative

 

 

(8,832

)

 

 

(9,364

)

 

 

(18,665

)

 

 

(18,355

)

Earnings Before Interest and Income Taxes

 

 

95,029

 

 

 

47,182

 

 

 

166,206

 

 

 

107,553

 

Interest Expense, net

 

 

(5,656

)

 

 

(4,342

)

 

 

(9,557

)

 

 

(8,828

)

Earnings Before Income Taxes

 

$

89,373

 

 

$

42,840

 

 

$

156,649

 

 

$

98,725

 

 

Cement Operating Earnings -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wholly–owned Operations

 

$

38,569

 

 

$

36,897

 

 

$

62,189

 

 

$

54,780

 

Joint Venture

 

 

12,147

 

 

 

11,680

 

 

 

20,127

 

 

 

19,510

 

 

 

$

50,716

 

 

$

48,577

 

 

$

82,316

 

 

$

74,290

 

 

Capital Expenditures -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

5,009

 

 

$

5,349

 

 

$

10,254

 

 

$

13,499

 

Gypsum Wallboard

 

 

2,097

 

 

 

203

 

 

 

3,425

 

 

 

1,700

 

Paperboard

 

 

400

 

 

 

2,424

 

 

 

1,704

 

 

 

3,268

 

Oil and Gas Proppants

 

 

8

 

 

 

16,744

 

 

 

65

 

 

 

32,711

 

Concrete and Aggregates

 

 

1,506

 

 

 

4,027

 

 

 

2,550

 

 

 

4,691

 

Other

 

 

233

 

 

 

—

 

 

 

233

 

 

 

—

 

 

 

$

9,253

 

 

$

28,747

 

 

$

18,231

 

 

$

55,869

 

 

Depreciation, Depletion and Amortization -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cement

 

$

8,784

 

 

$

8,629

 

 

$

17,395

 

 

$

16,495

 

Gypsum Wallboard

 

 

4,768

 

 

 

4,819

 

 

 

9,530

 

 

 

9,605

 

Paperboard

 

 

2,106

 

 

 

2,063

 

 

 

4,206

 

 

 

4,116

 

Oil and Gas Proppants

 

 

4,261

 

 

 

7,205

 

 

 

9,445

 

 

 

14,764

 

Concrete and Aggregates

 

 

1,920

 

 

 

1,565

 

 

 

3,669

 

 

 

3,070

 

Other, net

 

 

547

 

 

 

489

 

 

 

1,004

 

 

 

984

 

 

 

$

22,386

 

 

$

24,770

 

 

$

45,249

 

 

$

49,034

 

 

 

 

As of

 

 

 

September 30,
2016

 

 

March 31,
2016

 

 

 

(dollars in thousands)

 

Identifiable Assets -

 

 

 

 

 

 

 

 

Cement

 

$

833,219

 

 

$

819,994

 

Gypsum Wallboard

 

 

378,905

 

 

 

392,523

 

Paperboard

 

 

123,124

 

 

 

127,371

 

Oil and Gas Proppants

 

 

390,915

 

 

 

409,497

 

Concrete and Aggregates

 

 

109,683

 

 

 

106,634

 

Corporate and Other

 

 

72,289

 

 

 

27,616

 

 

 

$

1,908,135

 

 

$

1,883,635

 

 

Segment operating earnings, including the proportionately consolidated 50% interest in the revenues and expenses of the Joint Venture, represent revenues, less direct operating expenses, segment depreciation, and segment selling, general and administrative expenses. Corporate assets consist primarily of cash and cash equivalents, general office assets, miscellaneous other assets and unrecognized tax benefits. The segment breakdown of goodwill is as follows:

 

 

 

As of

 

 

 

September 30,

 

 

March 31,

 

 

 

2016

 

 

2016

 

 

 

(dollars in thousands)

 

Cement

 

$

9,729

 

 

$

9,729

 

Gypsum Wallboard

 

 

116,618

 

 

 

116,618

 

Paperboard

 

 

7,538

 

 

 

7,538

 

 

 

$

133,885

 

 

$

133,885

 

 

Summarized financial information for the Joint Venture that is not consolidated is set out below (this summarized financial information includes the total amount for the Joint Venture and not our 50% interest in those amounts):

 

 

 

For the Three Months
Ended September 30,

 

 

For the Six Months
Ended September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

(dollars in thousands)

 

 

(dollars in thousands)

 

Revenues

 

$

55,558

 

 

$

59,071

 

 

$

105,334

 

 

$

113,094

 

Gross Margin

 

$

25,588

 

 

$

25,193

 

 

$

42,925

 

 

$

42,204

 

Earnings Before Income Taxes

 

$

24,294

 

 

$

23,360

 

 

$

40,254

 

 

$

39,020

 

 

 

 

As of

 

 

 

September 30,
2016

 

 

March 31,
2016

 

 

 

(dollars in thousands)

 

Current Assets

 

$

69,699

 

 

$

70,491

 

Non-Current Assets

 

$

39,969

 

 

$

41,464

 

Current Liabilities

 

$

16,649

 

 

$

15,964